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Beyond Compare passes the exact path of the file, including in the zip. If the program knows how to handle a patch that includes a zip file (such as c:\folder\archive.zip\test.txt), then it should be able to work with our Open With command.

If you create a custom Open With that calls Beyond Compare, we are able to handle the paths. Which program are you using, and can it handle a path passed in from the command line pointing to a file within an archive?

One bit of advice: you could try creating a custom Open With command in Beyond Compare that would run the extraction process for you to a temporary location. Would these files need to be saved back into the archive, or are you opening them just to view them?

You could create a .bat file that first calls your installed zip program to perform an unzip from the command line to a temporary location, then call the program you wish to view the file on that temporary version. Once this is setup to run on a specific file, you can replace that filename/location with a .bat file command line variable (%1).

In BC3, you can then set the Open With to call this bat file on a specific selection, use the %f parameter, and that parameter can be accessed within the .bat file as %1.